Economist on China China's cash crunch also came about for a different reason. In 2008 America's interbank market froze because banks refused to lend to each other. China's froze last week because the central bank itself refused to lend. Despite the need of some banks for cash as the end of the quarter approached, the central bank sat on its hands, allowing rates to spike and signalling its determination to restrain the reckless growth of credit.